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Most Americans don’t think now is a good time to buy a home, according to new Gallup poll

A home for sale in Orlando, Fla. (AP Photo/John Raoux) (John Raoux, Copyright 2020 The Associated Press. All rights reserved)

Rising home prices are making it hard for people to buy, and most Americans think now is the time to wait. A new Gallup poll found only 30% of Americans believe now is a good time to buy a house. It’s the first time less than 50% of people across the country thought it was a good time to buy.

With home prices and mortgage rates rising, and a limited supply of housing, people are concerned. Americans’ negative assessments of the current housing market may also keep them from looking to buy, which could lead to a slowdown in home sales. If that happens, it would reduce the demand for houses and could lead to a decline in home values.

READ: GALLUP POLL RESULTS

Mean sale prices of U.S. homes are at a record $428,000. In the early 2000s, U.S. homeownership reached an all-time high and a record 81% said it was a good time to buy a house. By the mid-2000s, housing prices rose sharply and created a housing ‘bubble’ that led to a market crash.

As mortgage rates were low and housing values recovered in 2014, 74% said it was a good time to buy. That confidence waned in recent years -- dipping to 50% in 2020 and 53% a year ago before cratering this year -- as housing prices continued to rise amid limited supply and high demand.

According to the poll, most Americans believe housing prices will continue to increase, with 70% predicting they’ll increase over the next year, even though higher interest rates mean prospective homebuyers will have to stretch themselves to make higher mortgage payments or settle for a less expensive house.

The survey was conducted April 1-19.


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